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 What is Brand Equity
‡ Brand (American Marketing
Association): A µbrand is µa name, term,
sign, symbol or design or combination
of them. Intended to identify the goods
or services of one seller or group of
sellers and to differentiate them from
those of competitors
 What is Brand Equity
‡ Brand adds dimensions that differentiate it in
some way from other products or services
designed to satisfy the same need.
‡ Differences could be functional, rational or
tangible- related to product performance of
the brand
‡ It could also be more symbolic, emotional or
intangible- related to what brand represents
 What is Brand Equity
‡ Brand identifies the
± Source or Maker of the product
± Assign responsibility to a particular manufacturer
or distributor
‡ Consumers learn about brands through past
experiences and its marketing programme
‡ Brand simplifies decision making and reduce
risk. Brand reduces time and complications
of customers
 What is Brand Equity
‡ Brands simplify product handling or tracing
‡ Brands helps to organize inventory and
accounting records
‡ Brands offer legal protection for unique
features or aspect of the product
‡ Brand names can be protected through
registered trade marks, patents,, copyrights,
intellectual property rights
 What is Brand Equity
‡ Brand signal a certain level of quality
‡ Brand provides predictability and security of
demand
‡ Brand creates barriers to entry
‡ Brand creates loyalty and translates into a
willingness to pay a higher price often 20 to
25% more
‡ Brand works as a competitive advantage
‡ Brand is a legal property
 ßhe Scope of Branding
‡ Branding is endowing products and services
with the power of brand
‡ Branding is creating difference
‡ Branding is teaching consumers
± µwho¶ the product is-by giving it a name and using
brand elements to help identify it
± µwhat¶ the product does
± µwhy¶ consumer should care
 ßhe Scope of Branding
‡ Branding involves creating mental structures and
helping consumers organize their knowledge about
product and services in a way that clarifies their
decision making and in the process provides value to
the firm
‡ Consumers must be convinced that there are
meaningful differences among brands.
‡ Branding can be applied to anywhere
± Physical goods
± Services
± Stores
± Persons
± Places
± Organizations
± Ideas
 Brand Equity
‡ Brand equity is the added value endowed to product
and services
‡ ßhis value may be reflected in how consumer think,
feel and act with respect to brand as well as prices,
market share and profitability that the brand
commands
‡ Brand equity is an intangible asset that has
psychological and financial value to the firm
‡ Consumer-based brand equity can be defined as the
differential effect that brand knowledge has on
consumer response to the marketing of the brand
 Marketing Advantages of Strong Brands

‡ Improved perception of Product performance

‡ Greater loyalty
‡ Less vulnerability to competitive marketing actions
‡ Less vulnerability to marketing crises
‡ Larger margins
‡ More inelastic consumer response to price increases
‡ Greater trade cooperation and support
‡ Increased marketing communication effectiveness
‡ Possible licensing opportunities
‡ Additional brand extension opportunities
 Brand Equity
‡ Positive customer based brand equity:
when consumers react more favorably
to a marketing activity
‡ Negative customer ±based brand
equity: when consumer react less
favorably to a marketing activity
 Brand Equity
‡ Brand knowledge: consists of all the
thoughts, feelings, images,
experiences, beliefs and so on that
becomes associated with the brand.
‡ Valvo: Safety
 World¶s strongest Brands share
10 important attributes
‡ ßhe Brands excels at delivering the benefits the consumers
truly desire
‡ ßhe brand stays relevant
‡ ßhe pricing strategy is based on consumer perception of
value
‡ ßhe brand is consistent
‡ ßhe brand portfolio and hierarchy makes sense
‡ ßhe brand makes use of and coordinates a full repertoire of
marketing activities to build equity
‡ ßhe brand managers understand what the brand means to
consumers
‡ ßhe brand is given proper, sustainable support
‡ ßhe company monitors sources of brand equity
Brand Equity Models
Building Brand Equity
Measuring Brand Equity
Managing Brand Equity
 Devising Branding
Strategy
‡ A branding strategy for a firm reflects the no
and nature of common and distinctive brand
elements applied to the different products
sold by the firm
‡ ßhe decision as to how
± It can develop ne brand elements for the new
products
± It can apply some of its existing brand elements
± It can use a combiunation of new and existing
brand elements
 Devising Branding
Strategy
‡ Brand Extension: When firm ises an
established brand to introduce a nw product,
it is called Brand Extension
± Ex: Kingfisher Airlines
‡ Sub-brand: When brand is combined with an
existing brand, the brand-extension can also
be called as sub-brand
± Ex: Amul Masti Dahi, Maruti-Swift
 Devising Branding
Strategy
‡ Parent Brand: An existing brand that
gives birth to a brand extension is
referred to as Parent Brand
‡ Family Brand: If the brand is already
associated with multiple products
through brand extension then it may be
called as family brand
 Devising Branding
Strategy
‡ Brand Extension classification
± Line extension: ßhe parent brand is used to brand a new product
that targets a new market segment within a product category
currently served by the parent brand, such as through new new
flavors, forms, colours, added ingredients and sizes
‡ Lifebuoy Active Red
‡ Lifebuoy Active Orange
‡ Lifebuoy International Plus
‡ Lifebuoy International Gold
± Category Extension: ßhe parent brand is used to enter a different
product category from currently served by the parent brand
‡ Honda: Cars
‡ Honda: Motorcycles
‡ Honda: Generators
‡ Honda: Marine Engines

‡ Kingfisher: Beer
‡ Kingfisher: Airlines
 Devising Branding
Strategy
‡ Brand Line: consists of all products- original
as well as line and category extensions- sold
under a particular brand.
‡ Brand Mix: (Or brand assortment) is the set
of all brand lines that a particular seller
makes available to buyers
‡ Brand variant: are specific brand lines
supplied to specific retailers or distribution
channels. ßhese results from the pressure
retailers put on manufacturers to provide
distinctive offerings.
 Devising Branding
Strategy
‡ Licensed product is one whose brand
name has been licensed to other
manufacturers who actually make the
product